As organizations look for more ways to increase productivity and profitability, human resources departments are being asked to step up and provide more strategic input than ever before. In order to support executives and managers, HR needs to have the right tools in place to improve access to timely, accurate information that helps produce informed business decisions. If you don't have the right human resources management system (HRMS), HR can quickly become overwhelmed with just the day-to-day tasks—much less delivering insightful business intelligence. Many organizations turn to an HRMS solution to help face the many challenges, economic pressures, and tactical issues that arise every day.

So here are 5 things to consider when choosing an HRMS software system.

If you are looking to implement an HRMS solution to increase control over employee data, optimize productivity, and take employee engagement to the next level, make sure the solution you choose provides functionality that supports the following important components.

1. Security

Let's face it—when it comes to your employees' personal data, you have to take every precaution to protect it. You need a system that you can rely on so that information is not mishandled or misused. Capturing personal information about the people in your organization is a sensitive role and the repository needs multiple defenses, including encryption and dynamic, role-based security. You need a system that puts HR in control of employee data so you can protect against identity theft and safeguard benefits information to maintain trust and compliance with laws such as HIPAA.

2. Reliability

We live in a 24x7 world, and your HRMS needs to be available for use at all times. Whether your HR staff needs to perform employee change requests after business hours, or an employee needs a letter for his bank, you need an HRMS that you can access anytime, anywhere. With employee self service (ESS) functionality, your employees and their managers would be able to access many types of information on their own, including time off, pay history, contact information, training, and more. ESS means that employees and managers don't need to wait for someone on the HR team to help them with routine requests—and that's welcome news for the HR staff, too! Another aspect of HRMS reliability is the ability to meet your record-keeping requirements, and quickly access that information to stay in compliance with workforce regulations. You should rest assured knowing that your system can handle the complexity of compliance and produce the records your organization would need to satisfy a government inspector, or defend against an employee lawsuit.

3. Single Employee Record

Does your organization need help linking business processes? Too often, organizations struggle with inaccurate records because each department has its own system with its own data entry point. With a centralized database, your HR software offers a single source to payroll, administration, analysis, employee life-cycle management, and other critical employee information. It results in highly accurate, reliable data that your entire organization can count on. Whether it is a single point of data entry or simply knowing that you are looking at the most up-to-date position or salary for an employee, you need to make sure that your HRMS enables you to confidently perform the right task on the right employee data. It results in easier, more complete reporting and data analysis, which supports business decision-making and facilitates the best possible strategic planning for your workforce.

4. Communication

Whether your HRMS solution uses email alerts or paperless workflow online, a great HR system notifies your employees, managers, HR and payroll staff when something needs attention. With business monitoring and alerts, you can simplify HR processes by automatically notifying managers when overtime hours exceed the budgetary threshold or of upcoming employee certification renewal dates. Employee self-service capabilities can also help the HR department to communicate more effectively with employees and managers by making information easily available to them. In this way, your HRMS solution works for you around the clock and proactively helps you avoid problems that may have previously resulted in missed budget numbers, noncompliance risk, or confusion over time off or benefits.

5. Return on Employee Investment (ROEI)

It's important that organizations invest in their employees in order to increase employee engagement and retain their best performing employees. The right HRMS solution can help your organization achieve better ROEI by supporting the HR department while it implements effective benefits and programs for recruiting and retention. When you spend time, money, and other resources on a solid HRMS solution, does it improve workflow and the lives of your employees? Your HRMS solution should help you automate key business processes that affect your employees on a regular basis. Look to give employees ownership of their personal information with employee self-service capabilities, empower employees to make their own benefits elections, and get the tools you need to manage an effective training and development program.